Item 8.01 Other Events.
On November 4, 2009, MuniMae TEI Holdings, LLC ("TEI Holdings"), a subsidiary of
Municipal Mortgage & Equity, LLC (the "Company"), entered into a loan agreement
with Compass Bank, pursuant to which Compass Bank made a loan to TEI Holdings in
the principal amount of approximately $67.7 million. This new borrowing
refinances several financing arrangements which the Company and certain of its
subsidiaries had with Compass Bank. The Company and its subsidiaries did not
receive any additional proceeds from this loan. The new loan bears an effective
rate of interest equal to one-month LIBOR plus 5.0% per annum subject to a floor
of 6.0% per annum. The loan matures on November 1, 2011 subject to interim
curtailments, including an approximately $25.1 million pay down on November 1,
2010. The loan can be prepaid at any time without premium or penalty. The
Company guaranteed the loan and the loan is secured by tax-exempt bonds, taxable
bonds and cash. The loan agreement includes typical covenants for a secured
financing and also includes minimum liquidity, minimum net worth, minimum
assets, maximum leverage and minimum interest income covenants for TEI Holdings.
Financial covenants for the Company will be determined once the Company becomes
current in its securities filings.
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